Ansaldo STS likely to face renewed bid from Hitachi Rail to acquire complete control
Hitachi Rail, a unit of Japanese industrial conglomerate Hitachi [TYO: 6501], is likely to make a renewed effort to take its stake in Italian railway signaling equipment manufacturer Ansaldo STS [BIT: STS] to 100%, Italian-language daily Milano Finanza reported.
The report cited financial sources who claimed that Hitachi needs to make the move so that it can take on competitors such as Alstom and Siemens in the railway infrastructure sector.
The item noted that at present Hitachi Rail holds 50.7% of Ansaldo STS. The item noted that a previous attempt to delist Ansaldo STS failed when minority shareholders blocked the operation on the grounds that it was not generous enough.
The shareholders turned down an initial EUR 9.5 a share offer and also an improved EUR 10.5 a share offer. The report said that both investment banks and activist shareholders are saying that only a EUR 16.5 a share offer would have a chance of succeeding.
Paul Singer, the entrepreneur, presently holds a 25.6% stake in Ansaldo STS via Elliott and The Liverpool Ltd partnership, according to the report. Singer has signalled his willingness to increase the stake. The item added that Elliot and Liverpool were instrumental in the failure of the previous public offer.
Ansaldo STS has a market cap of EUR 2.35bn. Its share price at the close of trading yesterday 23 November was EUR 11.77 a share.